RETIRED GOVERNMENT EMPLOYEES WILL NO LONGER GET INCREAMENTS IN DA AND OTHER BENEFITS

RETIRED GOVERNMENT EMPLOYEES WILL NO LONGER GET INCREAMENTS IN DA AND OTHER BENEFITS

19-APRIL-ENG 6

RAJIV NAYAN AGRAWAL

ARA-------------------------In a major policy shift by the government, millions of pensioners are set to be affected. According to a report by *Lokmat*, the government has passed the Finance Act 2025, under which several key post-retirement benefits for retired government employees have been withdrawn.

Under the new framework, pensioners will no longer receive increments in Dearness Allowance (DA) or benefits derived from future Pay Commissions (such as the upcoming 8th Pay Commission).

The Finance Act 2025 states that the government will no longer assume the responsibility of maintaining the financial benefits of retired employees. This implies that the benefits of Pay Commissions and DA increments will no longer apply to employees who have already retired.

This decision has sparked deep concern among retired employees and their representative organizations. Critics argue that the new framework undermines a landmark 1982 Supreme Court verdict, which ensured that all pensioners would be treated equally, regardless of their date of retirement.

According to that verdict, pensioners were entitled to a pension equivalent to 50% of their last drawn salary, along with other benefits. However, the Finance Act 2025 alters this framework, stating that the government will independently determine any revisions to pensions or allowances; furthermore, the effect of any such increase will be prospective only—meaning no arrears will be paid retrospectively.

Currently, pensions are granted under the Pensions Act, 1972, under which many retired employees receive benefits. However, this Act does not apply to all categories of pensioners, and the matter has previously been litigated in the Supreme Court.

The new policy has generated profound anxiety among retired employees and their organizations, as they contend that these regulations will have a severe impact on their economic security. The author, Mr. C. Ram Raju (Retired M.E.O.), has appealed to all retired employees to remain vigilant and take collective steps to safeguard their rights.

He requests that this message be widely disseminated to all retired employees.